Do I pay my agent a commission on residuals?

Answer: When you get paid acting work, your agent gets paid for the work you do that day. But what happens when you work on a project that is covered by union rules and starts to generate residuals? Generally your agent gets paid on all of your residuals – but who actually pays your agent, you or the production company, is the real question to be answered… (continued in David’s answer below)

Community Answers

Answer: When you get paid acting work, your agent gets paid for the work you do that day. But what happens when you work on a project that is covered by union rules and starts to generate residuals? Generally your agent gets paid on all of your residuals – but who actually pays your agent, you or the production company, is the real question to be answered, and, as usual, it depends.

Getting a residual check in the mail is usually like Christmas morning – it’s often unexpected, often larger than expected, and it can absolutely make your day (and mortgage or rent). Your agent works very hard for you to get you those jobs – not only for the 70 or 80 dollars he gets when you get booked for a day’s scale work, but for the future payments that that work may generate.

Residuals are paid to you, and commission is paid to your agent. But, there are rules set forth by the various performance unions that determine who actually pays that commission, and on what the commission is paid. Sometimes, it’s up to you to write that 10% check (an absolute joy for me to do, and it gives me a reason to go visit him or grab a quick bite and talk career strategy). Sometimes, it’s up to the production company of the TV show, film or commercial you were in to write that check.

The following list is not exhaustive, and usually refers to SAG as opposed to AFTRA – you should always check with your union if you are confused about something, but your agent will also know the rules.

Here are all the gory details:

If the work was for primetime broadcast TV and the work was in Los Angeles, Chicago, Detroit, Atlanta, Washington D.C. or Hawaii, commission is payable on all prime time reruns if your employment contract is overscale (at least scale + 10%). If you worked for scale and you paid your agent commission out of your pocket, than you pay no commission on residuals.

If the primetime broadcast TV work was shot anywhere else (including New York), and your worked for scale, commission is payable for the first and second reruns. If you worked overscale (at least scale + 10%), commission is payable on every rerun.

For non-primetime broadcast TV and syndicated reruns with work shot in Los Angeles, Chicago, Detroit, Atlanta, Washington D.C. or Hawaii, commission is payable only if your employment contract is overscale (at least scale + 10%). Again, if you worked for scale and you paid your agent commission out of your pocket, than you pay no commission on residuals.

Likewise, for non-primetime TV work and syndicated reruns for projects shot anywhere else (including New York), if you worked for scale, commission is payable for the first and second reruns. If you worked overscale (at least scale + 10%), commission is payable on every rerun.

For foreign exhibition of your work, no matter where it was shot, commission is payable only if your employment contract is overscale (at least scale + 10%). If you worked for scale and you paid your agent commission out of your pocket, than you pay no commission on foreign residuals.

If the work was for a theatrically released SAG film, and the work was in Los Angeles, Chicago, Detroit, Atlanta, Washington D.C. or Hawaii, commission is payable only if your employment contract provides for overscale residual payment.

If your theatrically released SAG film was shot anywhere else (including New York), then all of your residuals are commissionable no matter what your contract says.

And finally, for commercials, no matter where they are shot, if they are kept on the air and reused for a long period of time, the first 21 months (the first 7 of the 13 week broadcast cycles) of your residuals are commissionable to your agent.

There are a number of things other than residuals that your agent is commissioned on – and there’s an ActingAnswers.com article about those other items here. There’s also a list in that article of what you get that your agent isn’t commissionable on. But when it comes to residuals, it’s time to share the joy with the most important member of your sales team – your agent.

That’s the whole point of this article. Your agent is your sales person. Whether he got you the audition or not doesn’t matter. What matters is that you’re both active in getting you work, and you get 90-100% of the pay, and he gets 10%.

Just because you got the audition doesn’t mean he won’t be dealing with scheduling, messaging you and the casting office about pre-reads, call backs, pins, producer sessions etc and them negotiating the original deal plus any subsequent deals. Getting you auditions is only part of what he does for you. If you disagree with that, I’d like to suggest you reconsider. And again, that’s the whole point.

I send my agent info on auditions I get for myself all the time, and he deals with it from there. And for that, I gladly pay him 10%. My advice remains that you do the same.

Hi David:
okay, I did voiceover for a cartoon network special that ran all weekend and then went to DVD. I just got a Residual check (about 3 years later). It came directly to me. Do I give my agent 10% off the top. I don’t believe any commission was negotiated regarding residuals…although it was union and they got commission added initially, there is no notation of commission added to this residual check.
Thank you.

I disagree with the information in this thread. Of course your agent would love to receive a commission on all monies received by you, however residuals are not something negotiated by your manager or agent, they have been negotiated by SAG-AFTRA through extensive contract negotiations and are often how actors survive in between acting jobs. I have never paid residual commissions to any of my representatives over the last 15 years.

I was asked to sign a contract with my new aget. The contract clearly states that the agency gets my compensation checks directly sent to the office. The contract also states that “I authorize this Agency as attorney in fact
for all payment authorization, endorsement authorization
and contractual signatures on any and all bookings secured.
By signing you are in agreement to all terms and conditions set forth above”. I am reluctant to let the agent act as an attorney on my behalf with no previous Law Education. Is this typical for a talent agent contract and am I being too paranoid?

This is completely normal and standard. You’re only looking at the word “attorney,” and the pertinent phrase is “attorney in fact.” Your agent isn’t being authorized to do any legal work for you, just to deposit any check that comes to him/her for work you do into a holding account, then sending you your proceeds after he/she takes 10%:

‘Attorney In Fact:’ A person who is authorized to perform business-related transactions on behalf of someone else (the principal). In order to become someone’s attorney in fact, a person must have the principal sign a power of attorney document.

My kids are represented but I self submitted us for a family audition. My husband was the only one booked for a national commercial. I informed my kids agent and she said to use her as a main contact. My husband doesn’t have a contract with the agency and I was the one who submitted for the role. Does he have to pay commission to the agent even though he has no contract with them?

He has no legal obligation, but the existence of a contract doesn’t determine the proper thing to do. If the agent dealt with the producers, got the contracts in order, made sure you knew the shoot and wardrobe dates, or did anything else to help your husband make that money, I would commission her. Why wouldn’t you? It’s 10 percent – you get 90. Encourage her with this – generate good will with this – don’t cheap out on this just because you can.

I’m an actress. And recently I booked a gig with my husband (who’s not an actor). This is a project we submitted on our own, without the agency’s help. Does the agency get a commission from him even though he’s not represented by the agency? Can you shed some light on this please? Thank you!

I was just offered an exclusive contract with a commercial agent in Los Angeles. According to the contract between me (the artist) and the talent agency, it says they are entitled to commission from all contracts requiring my professional services. My question is in regards to previous contracts still being fulfilled. I am currently contracted to a company to work as their in house VO talent. I receive a check weekly by filling out a time card, and they treat me as staff (meaning I do not re-negotiate regularly “permalance” is the nickname they have) so I am curious if I am required to 1. disclose this contract to the potential agent and 2. begin providing said agent with a commission from all future payments.

Negotiation a contract with a manager and in the contract it states that if the contract were to end, he/she gets commissions on residuals FOREVER…i have researched this and many lawyers recommend a “sunset clause” that puts a cap on how long the manager can get commission on residuals after contract termination…SO – i requested to insert this “sunset clause” and put a 5 year cap on how long after contract termination she can receive commission and she rejected it…thoughts?

I’d be surprised if those are experienced entertainment attorneys giving you that advice. They may want it in there, but it’s not common at all. The key is that representation are due commissions forever only on work you acquired while represented by them. That’s a big distinction.

Forever seems like a long time though. I read over music contracts and even songs that a manager helped an artist produce was cut off from getting commission in perpetuity. Do you find that the manage SHOULD get the commissions forever on work they helped an actor get long after the actor and manager are no longer working togheter? because then the artist will conceivably be paying commission to the former manager and the new one they find.

It is a very long time. You seem to keep ignoring the fact that any new manager you work with will only be commissioned on projects HE/SHE gets you as well, not anything you’ve booked in the past. You’re not paying commissions on the same projects twice.